As part of its March Budget, the government announced its intention to modernise the tax legislation relating to investment trusts. This was a welcome move - the current legislation dates back to 1965, and modernisation is long overdue.rnWhen the consultation is, hopefully, launched this summer, it should represent a shot in the arm for the investment trust industry. Like other sectors, the industry has not been immune from the poor economic climate; falling stock markets not only affect fund values, but may cause geared investment trusts to breach loan covenants and suffer difficulties in renewing and obtaining loan finance. Coupled with liquidity issues, this has seen shares in many investment trusts trading at a substantial discount to net asset value.
展开▼
